L3Harris Technologies (NYSE:LHX) reported third-quarter 2026 earnings and revenue above analysts’ expectations on Thursday and increased its full-year financial guidance. Shares of the U.S. defense contractor declined approximately 1% in premarket trading following the announcement.
The company reported adjusted earnings per share of $3.28, compared with analysts’ consensus estimate of $2.96. Quarterly revenue increased approximately 7% to $6.06 billion, exceeding the $5.93 billion forecast.
L3Harris also reported adjusted operating income of $967 million and a backlog of $53.2 billion, while raising its full-year earnings expectations.
L3Harris reported adjusted earnings per share of $3.28 for the third quarter, exceeding analysts’ expectations by $0.32 per share.
Revenue reached $6.06 billion, representing growth of approximately 7% compared with the corresponding period a year earlier. The result was above the market consensus of $5.93 billion.
Adjusted operating income totaled $967 million, compared with analysts’ estimate of $929.9 million.
The company’s adjusted operating margin was 15.9%, below the 16.2% anticipated by analysts.
Despite the earnings and revenue results exceeding forecasts, L3Harris shares declined approximately 1% in premarket trading.
Following its third-quarter performance, L3Harris raised its adjusted earnings per share outlook for 2026 to a range of $12.25 to $12.35.
The revised guidance compares with the company’s previous forecast of $11.80 to $12.00 per share and exceeds analysts’ consensus estimate of $11.90.
L3Harris also increased the lower end of its full-year revenue forecast.
The company now expects annual revenue between $23.5 billion and $23.7 billion, compared with its previous guidance of $23.2 billion to $23.7 billion.
The upper end of the revenue range remained unchanged.
L3Harris reported a backlog of $53.2 billion at the end of the third quarter, which the company described as a record level.
Free cash flow for the quarter totaled $1.26 billion.
Commenting on the results, Chief Executive Officer Sam Mehta said:
“Our team’s exceptional execution delivered solid financial performance in the third quarter. We grew backlog to record levels, underscoring the consistently strong demand for our mission-critical capabilities.”
The backlog figure represents the company’s reported outstanding orders and provides information about contracted business awaiting completion or delivery.
L3Harris reported third-quarter revenue of $3.09 billion from its Space & Mission Systems division.
The Communications & Spectrum Dominance segment generated revenue of $2.0 billion during the quarter.
Meanwhile, Missile Solutions reported revenue of $1.06 billion.
The three operating segments contributed to the company’s consolidated quarterly revenue of $6.06 billion.
The results were accompanied by adjustments to the company’s annual revenue expectations for two of its business divisions.
L3Harris increased its 2026 revenue outlook for the Space & Mission Systems segment to approximately $11.9 billion.
The previous forecast had been approximately $11.7 billion.
The revised estimate represents an increase of approximately $200 million in the segment’s expected annual revenue.
The adjustment formed part of the company’s updated full-year financial outlook following the third-quarter results.
The company lowered its annual revenue forecast for Communications & Spectrum Dominance to approximately $7.9 billion.
The previous expectation had been approximately $8.0 billion, representing a reduction of around $100 million.
L3Harris maintained its revenue forecast for Missile Solutions at approximately $4.1 billion.
The revised segment forecasts reflect changes in the company’s expected revenue distribution across its operating businesses for the remainder of 2026.
Alongside its revised earnings and revenue forecasts, L3Harris reaffirmed several other full-year financial targets.
The company continues to expect a segment operating margin in the low 16% range.
It also maintained its forecast for cash generated from operating activities at $3.6 billion.
Full-year free cash flow guidance remained unchanged at $3.0 billion.
These targets were reiterated despite the increase in the company’s overall earnings outlook and the adjustments to its segment revenue forecasts.
L3Harris reported third-quarter adjusted earnings of $3.28 per share and revenue of $6.06 billion, both above analysts’ expectations.
The company increased its 2026 adjusted earnings guidance to $12.25–$12.35 per share and raised the lower end of its annual revenue outlook to $23.5 billion.
Its quarterly adjusted operating margin of 15.9% was below the 16.2% consensus estimate, while the reported backlog reached $53.2 billion.
The company maintained its annual operating margin and cash flow forecasts, with the updated guidance providing revised expectations for its financial performance through the end of 2026.
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